RMO No. 30-2016: Prescribes the guidelines, policies and procedures for replacement of spoiled/bad order and factory defected internal revenue stamps under the Internal Revenue Stamps Integrated System (IRSIS)

Key points

1. Surrender of spoiled stamps. Under Section 8 of Revenue Regulations No. 7-2014, a local cigarette manufacturer surrenders spoiled or BO stamps within fifteen (15) calendar days after the end of the month of production, but not later than three (3) months from release by APO Production Inc. An importer surrenders them within five (5) months after receipt from APO and reports them under Section 10 of the Regulations.
2. Approval and payment. Replacement is allowed only upon BIR approval through the IRSIS online facility, with payment of the price prevailing when the stamps were originally ordered. It is done through the IRSIS ordering module after the equivalent Excise Tax is credited back to the ledger of the manufacturer or importer.
3. Validation. Crediting back requires validation of the existence and authenticity of the stamps, the number declared spoiled, and the Excise Taxes to be credited. Revenue Officers On-Premise at the plant and an authorized APO Production Inc. representative inspect the stamps together, witnessed by the company’s authorized representative.
4. No replacement. No replacement is allowed if the spoiled or BO stamp is not surrendered, or the stamps are unaccounted for, except for losses due to force majeure or other fortuitous events. It is also not allowed for surrendered stamps without a Unique Identifier Code (UIC) or Quick Reference (QR) Code, or with codes no longer verifiable by the mobile device.
5. Processing conditions. Processing proceeds after the request and returned stamps are submitted, provided the IRSIS reporting for affixed stamps of the previous quarter has been complied with. Wrong order stamps, or approved ordered stamps printed by APO but not yet released because of the ordering mistake, are treated as spoiled stamps, with release documentation still executed in IRSIS.
6. Storage. APO Production Unit, Inc. stores spoiled, BO and FD stamps at its LIMA Plant, identified and secured, for disposal under COA rules and regulations.

Who is affected

• Local cigarette manufacturers
• Cigarette importers

Deadlines and effectivity

• Local manufacturer surrender: within fifteen (15) calendar days after month of production end, not later than three (3) months from APO release
• Importer surrender: within five (5) months after receipt from APO